As the global shift toward sustainability accelerates, clean energy is becoming a core focus for long-term investors. Governments are increasing green infrastructure spending, and corporations are committing to net-zero targets. If you're looking for diversified exposure to this sector, here are three of the best clean energy ETFs to consider for 2025 and beyond.
1. iShares Global Clean Energy ETF (ICLN)
ICLN is one of the most popular clean energy ETFs, with over $4.5 billion in assets under management. It offers exposure to global companies involved in solar, wind, and renewable energy technologies. Its top holdings include Enphase Energy, Vestas Wind Systems, and First Solar. Although volatile, ICLN has strong long-term upside potential, especially with governments expanding green subsidies.
2. Invesco Solar ETF (TAN)
For those specifically interested in solar energy, TAN provides targeted exposure to the solar industry, with holdings like SolarEdge Technologies, Sunrun, and Canadian Solar. TAN has historically shown high beta but also strong returns during bullish clean energy cycles. As solar becomes increasingly cost-efficient, TAN remains a strategic long-term play.
3. First Trust Nasdaq Clean Edge Green Energy Index Fund (QCLN)
QCLN blends clean energy with tech innovation. It includes companies involved in electric vehicles, smart grid tech, and energy storage, such as Tesla, ChargePoint, and ON Semiconductor. This ETF offers both growth and sustainability exposure, benefiting from the electrification megatrend.
Want to see how these ETFs performed during recent market cycles? We’ve put together a full comparison — including historical returns, volatility metrics, and sector weightings — in our latest breakdown on the Investments School YouTube channel.
Clean energy ETFs are ideal for long-term investors who want exposure to a growing sector without betting on individual stocks. As ESG investing continues to gain momentum, these funds may serve both growth and impact goals in your portfolio.
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